Tuesday, December 13, 2005

Steve Jobs and his DRM

So far Steve Jobs has not licensed his “FairPlay” DRM to anyone except Motorola so they could build the “ITunes Phone”. Is this decision hurting Apple or helping them? I believe the decision is hurting his company.

I’ve read Apple’s AAC wrapped in their “FairPlay” DRM is the most popular downloaded music format on the Internet with all downloads coming from their ITunes Music Store. From what I understand Jobs only uses ITunes as means to sell IPods. Imagine if he were to license his DRM to other content providers like Napster, Yahoo!, and Peer Impact. I believe all these services would embrace the format due the popularity of IPod and sell all their music in this format. In return, this would increase Apple’s music format dominance and sell more IPods. I think Apple would also sell more IPods if it supported more formats and DRM containers such as media technologies that Microsoft has developed. (Maybe Microsoft won’t license their technology at a “fair” price so that’s why the IPod doesn’t support it.:) ) I also have to believe that Microsoft is thanking Apple for not licensing their DRM to other content providers because that leaves Microsoft's formats in the game still.

I’m sure Steve Jobs has some good reasons for not licensing his DRM and in the short term it would be hard to argue them, but I think he is settling. He could be more of a dominate force in the music format market then he currently is and with video becoming more and more popular he has the opportunity to dominate that format as well. But, I think video might be the format that final convinces Jobs to license his DRM. I don’t believe that everyone is going to want to watch movies and TV shows on a 2 inch screen going forward. There are plenty of devices out there today that people will prefer to watch there videos on and they don’t support Apple’s DRM. The IPod is great for music and Apple won everyone over with its look and ease of use, but they are forcing “A square peg into a round hole” when it comes to watching video on an IPod.

Next week I will talk about alternatives to the video IPod and devices that you can buy for your home that are not even in the same category as the video IPod for watching video, listening to music, and viewing photos that are stored on your home computer.


Anonymous Anonymous said...

No Update Bick you must of had a busy week .........

6:17 PM  
Anonymous Mark said...

This comment has been removed because it linked to malicious content. Learn more.

12:21 PM  

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